Daily Technical Strategist: USDCHF

Mar. 28, 2011 10:33 AM ET

USDCHF: Struggling To Keep Corrective Gains.

USDCHF: The pair is now struggling under bear pressure after closing strongly higher the past week. Further strength on those gains will have to follow if USDCHF is to keep its corrective recovery hope alive. In such a case, the 0.9368 level, its Mar 09’2011 high will be targeted with a violation of there turning the pair towards its Feb 22’2011 high at 0.9505. We expect a halt in recovery there if tested. Its daily RSI is bullish and pointing higher supporting this view. On the downside, the risk to our analysis will be a break and hold below the 0.8897 level with a loss of that level calling for further declines towards the 0.8800 level and then the 0.8700 level, all representing its psycho levels. All in all, though struggling to corrective higher, the pair continues to retain its long term downtrend bias.